Is Philanthropy Fueling Wealth Inequality?

April 5, 2016

Pablo Eisenberg is a long-time observer and outspoken critic of American philanthropy. “The same people get the benefits, the same people serve on boards, and the foundations have the same priorities they had a hundred years ago,” he tells us.

Eisenberg says those priorities don’t often help the neediest people — namely the poor, people of color, women and children at risk, and the disabled. “[They] are not getting more than a little piece of the philanthropic pie after all these years,” he says.

Pablo Eisenberg by Kristen Skillman/The Hoya

In fact, Eisenberg believes philanthropy and wealthy donors can actually do harm. “Philanthropy can be said to be furthering the gap between the haves and have-nots in our society. Academics have said that probably no more than 5 to 8 percent of all the money that philanthropy doles out actually goes to the neediest populations. I think that’s a very troubling indicator.”

Eisenberg is a senior fellow at the Center for Public and Nonprofit Leadership at the Georgetown Public Policy Institute. The Nonprofit Times once selected him as one of the 50 most influential people in the American nonprofit sector. In this podcast, he explains where the wealthiest donors are channelling their money, why small grassroots groups get less attention than large ones, and why it’s important to have more people — especially journalists — criticizing and investigating philanthropy and nonprofits.

1 Comment

A small non-profit organization in Dallas, Texas….The Dynamic Foundation has found a way to create sustainable communities without policy change, and without requiring continuous grants/funding. A specific algorithm designed to help moderate to low income families who’ve fallen into poverty. Mr. Eisenberg spoke volumes into the daily heartache and hope for us local non-profits. We need your help with connecting to philanthropists/entities who see the needs of the communities, women, children, veterans, disabled for its essence and truth…otherwise we are leaving a life of hopelessness for the children of tomorrow.